Washington State’s New “STEP” Law: Permanent Supportive Housing Now Required in All Neighborhoods

A significant legislative shift in Washington State is set to change the landscape of local neighborhoods as a new law, frequently referred to as the “STEP” (Shelters, Transitional, Emergency, and Permanent Supportive) housing mandate, removes the power of local governments to block low-income and supportive housing projects.

What the Law Mandates Under House Bill 2266 (and its companion Senate Bill 6069), cities and counties across the state are now prohibited from using local zoning laws to prevent the development of permanent supportive housing and transitional housing in any area where traditional residential homes or hotels are permitted.

Key provisions of the legislation include:

• Universal Access: Permanent supportive housing must be allowed in all residential and commercial zones, effectively bringing these facilities into suburban and urban neighborhoods that previously restricted them.
• Shelter Expansion: Indoor emergency shelters and emergency housing must be permitted in any zone that allows hotels.
• Limited Local Control: While cities can still impose “reasonable” requirements regarding health and safety, they cannot use these regulations to prevent a city from meeting its projected need for supportive housing as defined by state growth plans.

The Debate: Compassion vs. Safety The law has sparked a sharp divide between housing advocates and community safety groups.

• Supporters: Proponents, led by primary sponsor Rep. Strom Peterson (D-Edmonds), argue the law is a necessary “supply-side” solution to the state’s homelessness crisis. They contend that by streamlining the permitting process and removing “discriminatory roadblocks,” the state can finally provide the stable environments needed for vulnerable populations—including the disabled and those in recovery—to get back on their feet.
• Critics: Opponents, including researchers from the Discovery Institute, have raised alarms about the “Housing First” model used in many of these projects, which often does not require residents to undergo drug treatment or mental health services. Critics argue that forcing these facilities into every neighborhood without strict service mandates could lead to increased crime, “lawlessness,” and a chaotic environment for both the residents and the surrounding community.

The Legal Landscape The implementation of this law follows the 2024 U.S. Supreme Court ruling in City of Grants Pass v. Johnson, which gave cities more authority to enforce public camping bans. Washington lawmakers have argued that if cities intend to clear encampments, they must legally facilitate the construction of the very shelters and supportive units that this new law mandates.

Looking Ahead As the law takes effect, residents can expect to see a rise in permit applications for smaller-scale supportive housing projects within established residential blocks. For developers, the law provides a standardized state framework, making it significantly harder for local “Not In My Backyard” (NIMBY) opposition to stall or kill affordable housing initiatives.